Overview

• The US will impose a 25% tariff on UK car imports starting April 3, with tariffs on car parts following in May, marking a significant escalation in global trade tensions.
• Up to 25,000 automotive jobs in the UK are at risk, with major manufacturers like Jaguar Land Rover and Mini particularly vulnerable.
• The US is the UK’s second-largest export market for cars, accounting for 16.9% of UK car exports in 2024, worth £7.6 billion.
• The UK government has been unable to secure an exemption from the tariffs and is exploring long-term strategies to pivot toward green manufacturing to mitigate economic fallout.
• Business confidence in UK manufacturing has dropped to a two-and-a-half-year low, with analysts warning the tariffs could reduce UK economic growth by up to 1 percentage point if retaliation occurs.